Question: Question Two - Use the Business Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The

Question Two - Use the Business Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better:

The starting numbers in the case
OR
An offer of 2 Marion Berry pies for $99.00 with the following changes
0.85% Average Response, 50% COGS, $8.00 Fulfillment, and Response per Year of 23%, 15%, and 11% (No other changes)

An offer of 2 Marion Berry pies for $90.00 with the following changes
0.95% Average Response, 55% COGS, $8.00 Fulfillment, and Response per Year of 25%, 17%, and 13% (No other changes)

Question Two - Use the Business Figures Case Study numbers (in the

Space Ad Consumer Figures: Business Figures: Figures: Cost to reach a prospect $0.60 $0.70 $0.01 Average response 1.10% 0.90% 0.51% Average initial order $70.00 $80.00 $19.95 Average COGS 50.00% 50.00% 70.00% Initial Fulfillment Cost $7 $8 $4 Cost to reach a customer $0.50 $0.50 $0.50 Number of customer mailings/year A 4 4 Response per mailing year one 16.00% 24.00% 8.00% Response per mailing year two 13.00% 16.00% 6.00% Response per mailing year three 11.00% 12.00% 4.00% Time Value of Money Discount 20.00% 20.00% 20.00% Average repeat order $75.00 $150.00 $30.00 Average repeat COGS 50.00% 50.00% 55.00% Repeat Order fulfillment Cost $6 $7 $5

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Marketing Questions!

Question Two - Use the Business Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The starting numbers in the case OR An offer of 2...

Question One Use the Consumer Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The starting numbers in the case OR An offer of 2...

Question One - Use the Consumer Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The starting numbers in the case OR An offer of 2...

Group Exercise, To time lift off ariswering other than the deadline. You can change your ariswers. Up to s bmit similar answers. gestion 1 3 p Jestion One - Use the Consumer Figures Case Study...

- Use the Consumer Figures Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The starting numbers in the case OR An offer of 2 Honeybell...

Use the LTV Case Study numbers (in the Word doc) and determine from an overall profitability standpoint, which is better: The starting numbers in the case OR An offer of 2 Marion Berry pies for...

With the introduction of new soaps and successfully completing their order for unique shampoo bars, Bubble Oasis has received numerous inquiries from wholesalers and retailers in recent months and...

Briefly explain the responsibility of company management and the independent auditors in the accounting communication process.

Bear Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. Assets: Asset Type Amount Interest Rate 2-year...

Implement an EasterDate class whose objects represent the date of Easter. The EasterDate class should have month, day and year, all integers, as instance variables. The EasterDate class should have...

4. Suppose that the opportunity-cost ratio for sugar and almonds is 4S 1A in Hawaii but 1S 2A in California. Which state has the comparative advantage in producing almonds? LO26.2 a. Hawaii. b....

5. Suppose that the opportunity-cost ratio for fish and lumber is 1F 1L in Canada but 2F 1L in Iceland. Then should specialize in producing fish while should specialize in producing lumber. LO26.2...

3. True or False: If Country B has an absolute advantage over Country A in producing bicycles, it will also have a comparative advantage over Country A in producing bicycles. LO26.2